Trading in Stock Market heavily depends on analyzing chart patterns and using indicators to determine the trends in the market. Indicators give us useful information about ongoing market trends.
Here are some of the best indicators used for Intraday Trading:
Relative Strength Index (RSI) Indicator:
This is a momentum indicator. This indicator is used to determine the trend in the market. It is a line that ranges from 0 to 100. If the line is ranging above 70 then the share is in the overbought zone & if the share is below 30 then the share is in the oversold zone. This indicator tells the trader whether the market is in an uptrend downtrend. RSI above 50 means an uptrend and RSI below 50 means a downtrend.
Moving Averages Indicator:
It is one of the basic indicators used by most traders, this indicator provides details about the momentum and trend in the market. This indicator can also be used for swing trades. It also provides information about the trend reversal in the market. It provides good entry and exit signals for buying and for short selling also.
SuperTrend Indicator:
As the name suggests this indicator moves with the ongoing trend in the stock market and provides buy and sell signals. This indicator can also be used for swing trades. This indicator. This indicator can be used on different time frames. For intraday traders use this indicator on a 5-minute or 15-minute time frame.
NOTE: Use this indicator in the trending market only.
Volume Weighted Average Price (VWAP):
VWAP tells the trades about the trends in the market. This indicator moves according to both the price and volume coming on that particular stock. This indicator helps the trader for taking breakout trades and gain handsome profits. It can be used on multiple time frames but the best time frames for intraday trades are 5 & 15 minutes. This is a single line indicator.
The formula for VWAP= ∑Price*Volume/∑Volume
NOTE: Always trade with a stop loss.
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